Finance · Free tool
EMI Calculator
Plan your home, car or personal loan EMI. Adjust loan amount, interest rate and tenure — see your monthly EMI, total interest and the full amortisation schedule instantly.
How is EMI calculated?
EMI uses the standard reducing-balance formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where P is principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is tenure in months. Each month, a larger share of your EMI goes towards principal and a smaller share to interest — you can see this in the year-by-year breakdown.
Tips
- Drop the tenure by 5 years and watch total interest crash — usually a much bigger lever than chasing 0.25% on the rate.
- Floating-rate home loans usually let you prepay without penalty. Even ₹1 lakh prepaid in year 2 saves lakhs in interest.
- For tax planning, home-loan principal qualifies under 80C (up to ₹1.5 L) and interest under Section 24(b) (up to ₹2 L for self-occupied).
FAQ
EMI vs reducing balance — what's used?
All Indian banks use reducing-balance method. EMI is constant, but the interest portion shrinks as balance reduces. Earlier EMIs are mostly interest, later ones mostly principal.
Can I prepay anytime without penalty?
For floating-rate home loans (individual borrowers), RBI prohibits prepayment penalty since 2012. Fixed-rate or business loans may have 2-4% penalty.
Does the EMI change if RBI cuts repo rate?
Floating-rate loans: yes, but with lag. Banks reset based on their MCLR / EBLR cycle (1, 3, 6, 12 months). Pure fixed-rate loans don't move.